REAP WHAT YOU SOW.

When clients win, you win. Attract profitable, loyal depositors by offering mutually beneficial deposit programs and pricing. Your Farin Advisor and iPrice, our deposit pricing solution, can help you attract and retain business, as well as keep track of your competition and create offers depositors can’t resist, all while maintaining respectable margins.

DEPOSIT PRICING — PRECISION IS KEY.

Today’s deposit pricing environment is more competitive than ever.

Your Farin Advisor and our iPrice Deposit Pricing solution will help you establish an effective deposit pricing process, reduce interest expense and grow your institution.

FARIN RETAIL BANKING EXPERTS AND
iPRICE PUT YOU AHEAD OF THE GAME

At Farin Financial Risk Management, our roots are in retail banking, many of our staff have worked in management roles at banks and credit unions. We understand that when rates rise, the constant juggling of cost of funds vs. deposit pricing offers can keep you awake at night. The iPrice Deposit Pricing model is a complete, interactive pricing solution, designed to bring structure and discipline to your pricing process. Maintaining competitive pricing strategies requires on-going education, robust software and advisory services tailored to your institution. Your Farin Advisor and iPrice will help put your mind at ease and a successful strategy in place.

DEPOSIT PRICING STRATEGY MADE SIMPLE…

Farin doesn’t just sell software, then forget about you. Your Advisory team is available to help you develop a full plan or just ask a quick question – whatever suits your needs at the time.

“We’ll help you get your costs in line and your deposit pricing plan ready. As the economy recovers, liquidity may become an issue. If loan growth exceeds deposit growth, the excess deposits you have stashed away in your investment portfolio will be used to fund loans. With recovery comes rising interest rates. When customers see rates going up at other institutions, they’ll expect increases or they will leave. You’ve got to have a plan to attract AND retain profitable customers.”

Dave Koch, Farin President & CEO

WHY TRUST YOUR DEPOSIT PRICING TO FARIN AND iPRICE?

OUR EXPERIENCE

  • Farin knows Deposit Pricing – We have over a century, literally, of retail banking experience – developing successful pricing policies, programs and offers.
  • Farin is recognized by institutions, regulators and trade associations as industry leading Deposit Pricing and Core Deposit Analysis Experts. iPrice is recognized as the top performing Deposit Pricing web-based software available for institution use in the industry.
  • Steve Craven and your Farin support team will help you implement the iPrice model, get up and running, and trouble shoot when you run into issues.

OUR FOCUS

  • We focus on advisory services and financial analysis. We are not distracted by other lines of business such as data processing or funds management.
  • Exceptional customer service is our goal. We are just the right size – big enough to provide cutting edge financial analysis, yet small enough to give you the attention you deserve.

“3 REASONS WHY YOU NEED A DEPOSIT PRICING STRATEGY NOW…” 

Tom Farin, Founder and Chairman of the Board

1. Rate increases don’t happen 200 bp at a time.

“It is more like water torture. Competitors rates go up by 10 bp, drip, drip, drip. If you don’t have rising rate strategy, when the drips start happening you’ll respond by raising your rates in reaction to your competitor’s rate changes. If you act now, you can implement a segmentation strategy that holds down your cost of funds.”

2. Rates may not be increasing in the real world, but they do in your A/L model!

“Whether the rate increase is immediate and permanent, or a rate ramp, you need a deposit pricing strategy for rising rates or you may overstate the increase in your cost of funds during rising rates, which will blow both your EVE (NEV) and income at risk calculations. Miscalculation can lead to expensive management decisions to address interest rate risks which may not exist.”

3. Floors and investments…

“Many institutions have floors under variable rate commercial loans and home equity lines. For the first 200 bp increase in rates, your yield on those assets will move very little. And your cost of funds will move – more if you don’t have a strategy, less if you do. Are the funds in your investment portfolio earning more or less than the yield on your floored assets?”

FUNDING LONG-TERM ASSETS ON THE CHEAP

Read Tom Farin’s articles ►

DEPOSIT PRICING IN A RISING RATE ENVIRONMENT

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“Using iPrice, we definitely know when we have irrational deposit prices, and we can make changes to bring the prices back in line. Steve Craven is terrific … helping us navigate iPrice and he’s available to answer any questions we have.”

Margaret Hasenbeck

Vice President/CFO

Community Credit Union of Florida 

Central Florida

Over $500 Million institution

Farin client for over 10 years

GETTING STARTED WITH iPRICE

Step 1 – ASSESSMENT

We conduct a thorough review of your institution’s deposit pricing processes to evaluate your current deposit products, price setting processes, competitors’ pricing, and market opportunities.

Step 2 – INITIAL STRATEGIC REVIEW

A critical step in the process, our Initial Strategic Review forms the foundation of a successful deposit pricing program. A session is scheduled at your institution to educate your management and deposit team members on the keys to effective pricing processes and provide insight into improving your product mix, pricing and margins.

Step 3 – IMPLEMENTATION

Farin provides in-depth iPrice training, so your entire team understands how to use iPrice to its full potential. Everyone learns how to:

  • Update the model
  • Create pricing rules and reports
  • Develop deposit scenarios
  • Modify rates
  • Compare current and proposed strategies
  • Manage marginal cost and profitability implications
  • Back test past decisions

Step 4 – PERIODIC REVIEWS

The long-term success of iPrice depends on ongoing review, revision and adjustments to your institution’s pricing rules and strategies. To assist your management team, your Farin Advisor will periodically lead key decision makers through a process of evaluating the success of previous strategies, identifying opportunities and revising pricing rules.

“While we would all be excited to see higher rates to bring available yield back up, we must be careful how fast and what shape those increases take. There is always a new hurdle we need to jump. Be aware of this possibility in the near future – We may see an increase on short-term rates of say 4 to 5%, while long-term rates rise by only 2%. This “flattening yield curve” must be accounted for in ALM analysis going forward. Call us, if you need assistance with deposit or loan pricing, credit risk management or ALM. We’ve got your back.”

Dave Koch, Farin President & CEO

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FARIN DEPOSIT PRICING VIDEO

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FARIN iPRICE DEPOSIT PRICING
REPORT EXAMPLES

Tom Farin

Founder/Chairman of the Board
tfarin@farin.com

“What makes Farin different? We don’t take shortcuts.”

More about Tom ►

REVIEW THE COMPONENTS OF OUR COMPREHENSIVE SUITE

For over 30 years, we’ve specialized in providing advice, education and software solutions focused of five interdependent, core business facets common to institutions. We help financial professionals make informed decisions, anticipate and avoid issues, maintain compliance and thrive in any economic environment.